Around 10,000 Tesco shareholders are thought to be entitled to compensation from the FTSE 100 retailer.
The British supermarket giant first notified investors in March that it had reached an agreement with the FCA to compensate investors who purchased Tesco shares or certain listed bonds between 29 August and 19 September 2014.
During said period, the supermarket chain revised its profit estimate for the half year from £1.1bn, stating that an “accelerated recognition of commercial income and delayed accrual of costs” had caused it to overshoot its expected profit.
The FCA’s crackdown on Tesco was the first time the regulator has demanded restitution from a listed company for market abuse.
Tesco also consented to pay a £129m penalty fine for providing a “false or misleading impression” about the value of its publicly traded shares and bonds.
KPMG has been appointed to administer the compensation scheme with oversight from the FCA.
Claims can now be submitted through KPMG’s online claims portal and the accountancy firm has said it will shortly write to all parties identified as eligible claimants.
Investors must submit a claim if they want to be compensated.
Commenting on the news, Danny Cox, chartered financial planner at Hargreaves Lansdown said: “Compensating investors is the final chapter in the accounting saga and Tesco is keen to put this episode behind them, especially as CEO Dave Lewis has got the business moving in the right direction despite challenging market conditions. Stronger trading, particularly in the UK, means that after a two plus year absence, Tesco is planning to restore its dividend this year.
“Investors who have not yet made a compensation claim are now on the clock to submit their claims or receive nothing.”
Tesco’s shares were in high spirits after the compensation update, up 2% to £1.88p per share by mid-morning on Wednesday.
